Petrobras and Galp have acquired stakes in Block 4 in São Tomé and Príncipe, joining British energy giant Shell in a promising offshore prospect in the West Africa region, according to a report by Zacks Equity Research.
Shell will retain its role as operator of Block 4 with a 30-percent working interest, ensuring continuity of project management, while its new partners, Portugal’s Galp and Brazil’s Petrobras, bring their expertise, enhance resource allocation efficiency and reduce concentration of risk. The two state-owned companies will each have 27.5-percent stakes, while the remaining 15 percent is held by ANP-STP, the national oil company of São Tomé and Príncipe. The block is part of the Economic Exclusive Zone, one of two designated oil areas in the country, totalling 160,000 square kilometres across 19 blocks.
Block 4 runs along the eastern coast of Príncipe, marking Shell’s northernmost holding along with Blocks 10, 11 and 13. French giant TotalEnergies, Nigerian oil company Oranto Petroleum and US company Kosmos Energy also have holdings in the eastern offshore blocks.
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The farm outs of Block 4 are just the latest partnerships in São Tomé between the three multinationals. Petrobras made its return to Africa in February 2024 through a series of partnerships with Shell in São Tomé, acquiring 45-percent interests in Blocks 10 and 13 and a 25-percent stake in Block 11. ANP-STEP is a partner on all three, while Galp holds a 20-percent stake on Block 11.
Galp, more firmly established in the region, also manages two ultra-deepwater blocks (6 and 12) in partnership with Shell, ANP-STP and Norwegian energy company Equinor. The Portuguese company’s successful 2022 drilling of Jaca-1, located in Block 6, confirmed the existence of an active petroleum system, validating previous seismic and geological studies. This discovery, Zacks notes, has been instrumental in guiding further exploration and de-risking the investment environment.
Such studies are ongoing across multiple blocks, including Block 4, as companies work to refine their subsurface understanding and identify commercially viable hydrocarbon accumulations. Zacks emphasises how the partnership in Block 4 combines a wealth of expertise, financial resources and risk mitigation that will help accelerate the discovery timeline and increase the likelihood of commercial success. Participation from ANP-STP helps ensure such efforts align with environmental standards and socioeconomic considerations as well.
